Working Capital & Runway are critical financial measures in property development finance UK. Working capital reflects the difference between current assets, such as cash and receivables, and current liabilities, indicating a developer’s ability to meet short-term obligations. Runway estimates the period a development project can continue before additional funding is required, based on current working capital and projected expenditures. Both metrics help SME UK property developers manage liquidity risk, schedule construction phases, and ensure sufficient capital is available throughout the project lifecycle, supporting informed decisions in planning, financing, and managing property development finance efficiently.
This sits within Cash Flow & Timing, reflecting a specific measurement approach that influences how performance, risk, or funding constraints are assessed. It is commonly considered alongside Cash Inflow Timing, as both are closely related measures used to assess similar aspects of performance or risk. In funding terms, Working Capital & Runway is most commonly encountered in connection with Senior Revolving Credit Facility within the property development capital stack.
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